Business, 18.01.2021 14:00, glitterpanda2468

Home countries can adopt policies designed to both encourage and restrict FDI. Host countries try to attract FDI by offering incentives and try to restrict FDI by dictating ownership restraints and requiring that foreign multinational enterprises (MNE) meet specific performance requirements. Determine whether the scenario represents a benefit or cost to the home or cost country, and then match it to the appropriate place.

a. Outflow of earnings from a foreign subsidiary
b. Loss of jobs
c. Host country limits profit expatriation
d. Transfer of new technology
e. Loss of local entrepreneurship

1. Host-country benefit
2. Home-country benefit
3. Host-country cost
4. Home-country cost

Answers: 2

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Home countries can adopt policies designed to both encourage and restrict FDI. Host countries try to...